Need some advice plz.

[jujuk8]

I don't know what type of account I should have. I'm 18 with almost $7k in just savings on my Wachovia. That is the biggest amount I have in all of my savings account. I've got $4k in my BoA, about $1100 in my Roth IRA, and $500 in my Regions bank savings account.

I'm wondering what kind of account I should keep that money in. Right now the $7k is in a regular savings account, but I get interest rates that are close to nothing.

Any advice?

I've also got another question about credit cards.(looking to get one), but I'll make another thread for it.

[kork13]

It depends on what you're looking for. If you're after keeping your money liquid (easily accessible), you want either a high-yield savings account (listing of some options here) or a Money Market mutual fund account, which you can open with many investing firms.

It sounds like that's sort of what you're looking for right now, so I'll just leave it at that for now. If you want to provide more details about what your goals are with the money, or give us a better idea of your total financial picture, we can give you some more specific advice.

[Seeker]

Depends on what you plan on doing with it, now, three months from now, 6 months, etc.

I'd probably split them up and place them in "laddered" CDs (Certificates of deposits). Though they earn very little, it's better than a regular savings account.

Then I'd use the regular savings as a current deposit of anything extra each month and when the CDs come due, I'd move more money into them and renew. If you setup 4 CD accounts every three months for a 1 year term, you should be off to a good laddered setup.

Do you have a budget? Income listed and monthly expenses listed.

Do you have an Emergency Fund set up for any unexpected expenses?

If you are basically working and saving, you can also be looking into Mutual Funds or other avenues of investing in a mixture of stocks and bonds (more stocks at your age).

Everything really depends on your needs and wants and what amount of "risk" you're willing to take. Read up on personal financial management.

[jujuk8]

I don't really have use for the money. I'm a college freshman living at home. All I really need is gas and food money. Nothing else really..

[maat55]

Are you steadily earning money you do not use?

If you have no immediate plans for the money, I would convert your 7k plus 2 or 3k from your 4k savings into one high yield savings account. Then, start funding your Roth with your excess funds. I would combine your 500 with the 1 to 2k that did not go to the high yield account, in a local savings account.

As far as the credit card, do not use it unless you can pay in full every month. I suggest you start with a gas card.

[snafu]

What faculty? What is your career goal? Do you have any desire to travel in your 'gap' [3rd] year? Will you seek summer employment?

Kudos to you @ 18 with savings! Most people are motivated to save to meet a future goal perhaps a newer car, buying a home, starting your own business etc. Would you be interested in reading 'The Millionaire Next Door?'

If you have no plan and no expectation of using $5,000. segments of your savings, in the next five years... I think you should consider buying a Dividend Mutual Fund with a very low fee [Vanguard?] using Dollar Cost Averaging [DCA] process. You will be required to make a minimum initial purchase and sign for automatic, equal monthly payments whose sum you can establish.

You will be buying fund units at different prices each month depending on stock market valuations. I am suggesting this because the market is particularly low just now. In 5 years you will likely see impressive gains.

[jujuk8]

Are you steadily earning money you do not use?

If you have no immediate plans for the money, I would convert your 7k plus 2 or 3k from your 4k savings into one high yield savings account. Then, start funding your Roth with your excess funds. I would combine your 500 with the 1 to 2k that did not go to the high yield account, in a local savings account.

As far as the credit card, do not use it unless you can pay in full every month. I suggest you start with a gas card.

I will look into a high yield savings account. Right now I only work 1 day a week, but over the summer with my raise, I might be able to pull in over $400 before taxes.

What faculty? What is your career goal? Do you have any desire to travel in your 'gap' [3rd] year? Will you seek summer employment?

Kudos to you @ 18 with savings! Most people are motivated to save to meet a future goal perhaps a newer car, buying a home, starting your own business etc. Would you be interested in reading 'The Millionaire Next Door?'

If you have no plan and no expectation of using $5,000. segments of your savings, in the next five years... I think you should consider buying a Dividend Mutual Fund with a very low fee [Vanguard?] using Dollar Cost Averaging [DCA] process. You will be required to make a minimum initial purchase and sign for automatic, equal monthly payments whose sum you can establish.

You will be buying fund units at different prices each month depending on stock market valuations. I am suggesting this because the market is particularly low just now. In 5 years you will likely see impressive gains.

Seems complex, I will have to do some research before getting into it.


also has anyone tired out redneck back? I can't post links so you can Google it.

5.25% APY on their rewards checking account, but you have to make 10 transactions and all statements come electronically.

[mquintana]

Look into ing direct (online) because they offer higher percentages than most banks. The more money you have in there, the more interest you make off of it. Plus you can transfer for free to your checking if you need it.

[swanson719]

I'd personally keep $2500 in a money market mutual fund, $1000 in savings, put another $3900 into your Roth to max it out, and then use the other $4100 to buy stocks in something like GM or Ford that is sitting dirt cheap right now, and has to come back at some point. If you're not comfortable with buying individual stocks, buy high yield mutual funds.

[poundwise]

Look into ing direct (online) because they offer higher percentages than most banks. The more money you have in there, the more interest you make off of it. Plus you can transfer for free to your checking if you need it.

Be advised: ING is near the bottom-of-barrel for high-yield online savings. Refer to the Online Savings thread here at SavingAdvice for more information on these types of accounts.